Carmaking Giant Ford Second-Quarter loss of 123million!

[palefrost]

Carmaking giant Ford posted a surprise second-quarter loss of $123m (£66.5m) as sales of sport utility vehicles (SUV) fell on higher petrol prices.
The firm is shutting 14 plants and cutting up to 30,000 manufacturing jobs in North America by 2012.

Earlier this month, it announced it was to cut its shareholder dividend in half, dealing a blow to investors.

Then, it announced a 50% cut in its third-quarter dividend to five cents

Blah ! Supposedly they relied too heavily on sales of SUVs and trucks and didnt development other models. Hello! Stop looking at profit and start paying attention to the world trends you dummies!! You didnt see the oil problem years ago?

http://news.bbc.co.uk/2/hi/business/5198324.stm

 

[Brandon]

Complacentcy and laziness sooner or later will be a companies downfall. Management that doesn't try and foresee future trends will lose out to their competitors.

While I do feel sorry for the lot jobs, this is how capitalist countries work. Companies that do not serve the people with products they want or need are doomed to fail. Failure in the long run is better for consumers.

 

[LyricB]

I feel bad about the people losing thier jobs too, but you guys are totally right that Ford should have paid some attention to what was going on and looked at some better fuel efficiency in thier vehicles.

 

[sarah]

Sadly, the CEOs and the higher-ups in the companies like Ford aren't the ones who really suffer when things like this happen... it's the people working for minimum wage who loose their jobs.

 

[LyricB]

That's true, sarah, and when CEO's do lose their job they're usually handed a big, fat severance package.

 

[sarah]

Exactly LyricB... screw the little guy.